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Friday, January 31st, 2020

U.S. deficit to eclipse $1 trillion in 2020, CBO says, as fiscal imbalance continues to widen

Author:     Jeff Stein
Source:     The Washington Post
Publication Date:     Jan. 28, 2020 | 12:23 p.m. PST
 Link: U.S. deficit to eclipse $1 trillion in 2020, CBO says, as fiscal imbalance continues to widen
Stephan:   The American economy has moved into a level of indebtedness so vast it exceeds the annual GNP of several dozen countries combined.  Much of this, of course, is due to the Trumper tax cuts, and trade manipulations which have grossly enriched the already rich. And yet the Trumpers blithely go on touting what they see as economic success. Look forward to further cuts in services for the poor and middle class, as Republicans try to reduce a deficit projected to reach $31 trillion in 10 years.

The U.S. Capitol seen through window with reflections Jan. 27, 2020.
Credit: Patrick Semansky/AP

The U.S. government’s budget deficit is projected to reach $1.02 trillion in 2020, according to a report released Tuesday by the nonpartisan Congressional Budget Office, as the federal government continues to spend much more than it collects in tax revenue.

A combination of the 2017 tax cuts and a surge in new spending has pushed the deficit wider. This year would mark the first time since 2012 that the deficit breached $1 trillion, a threshold that has alarmed some budget experts because deficits typically contract — not expand — during periods of sustained economic growth.

Overall, the CBO projected that the federal government will spend $4.6 trillion in the fiscal year that ends Sept. 30 and bring in $3.6 trillion in tax revenue.

And some of the costliest government programs are projected to experience expansions in […]

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